The assessee was a company incorporated in Switzerland. A notice of reassessment was issued to it. The reasons stated were that the assessee had been identified as a foreign company in the non-filers monitoring system category and that during the financial year 2010-11 relevant to the assessment year 2011-12 it had entered into a share transaction. The assessee filed a return and raised the following objections: (i) that the assessee’s income from India consisted only of dividend and interest on which tax had been deducted at source in accordance with the Act or the Double Taxation Avoidance Agreement between India and Switzerland; and (ii) that the share transaction was with its subsidiary and no taxable income had been generated. The objections were rejected. On a writ petition against the order the Court held that the averment of the assessee that during the assessment year 2011-12 its receipts from its Indian subsidiary was comprising only of dividend and interest on which tax was deductible at source and had been deducted in accordance with the provisions of the Act had not been disputed by the Revenue. It was also not disputed that the assessee was specifically exempted from filing the return under section 115A(5). The principal objection of the assessee that its investment in the shares of its subsidiary could not be treated as income was well founded. Therefore the fundamental premise that the investment by the assessee in the shares of its subsidiary amounted to “income” which had escaped assessment was flawed. The question of such a transaction forming a live link for reasons to believe that income had escaped assessment was entirely without basis. The notice was not valid. (AY. 2011-12)